Drawdown
max drawdownMDD
Peak-to-trough loss over a window — the headline measure of strategy-level downside risk.
For stablecoin yield strategies, drawdowns occur via depegs, smart-contract losses, perp-funding flips, or RWA mark-downs. StableLens publishes per-pool max drawdown over multiple windows so allocators can pressure-test strategy claims of "stable yield".
Related terms
- Tail riskThe risk of rare, large-loss events sitting in the far end of the return distribution — typically underestimated by short-window historical models.
- DepegA stablecoin trading materially away from its target price ($1 for USD-pegged stables) on a primary venue.
- Risk-adjusted APYHeadline APY discounted by the StableLens risk model — comparable across protocols, chains, and structures.